Focus Areas
We recognise our responsibility to help protect the environment and support the transitions towards a low-carbon economy. We seek to do so in two main ways:
Managing our emissions: Minimise the negative environmental impact of our operations, with a particular focus on reducing greenhouse gas emissions. Our target is to be carbon neutral across both Scope 1 and Scope 2 emissions by the end of 2026. The Group’s strategy focuses on:
a) reducing the emissions of our own operations; and
b) ensuring the resilience of our business against the backdrop of climate change.
Supporting our clients: Apply our unique capabilities and strengths – our capacity to connect clients to liquidity and data solutions – to help them advance their transition journeys and meet their sustainability objectives.
Scope 1 and 2 – Target and Roadmap
To help meet the Net Zero ambition set by the UK government, our absolute emissions target is to be carbon neutral across both Scope 1 and Scope 2 emissions by the end of 2026.
On Scope 1 and 2, we continue to make progress with emissions reducing 20% in the year. This performance was driven by a decrease in fugitive emissions, and the consolidation of several on-premises data centres during the year.
A considerable proportion of the emissions savings from the office consolidation plan have been delivered. We expect the principal generator of future savings to come from the continuing consolidation of our data centres, and migration from on premises data centres to the cloud. These savings may be significant – up to potentially a further 15-20% reduction in Scope 1 and 2 emissions over the next two years. The savings will be split between energy efficiencies arising from migrating to the cloud, and emissions being reclassified from Scope 1 and 2 to Scope 3. We will continue to work towards reducing our Scope 1 and 2 emissions as far as possible, before purchasing certified carbon credits to offset any residual emissions.
Scope 3
In 2023, we reduced our total emissions for the Group globally, covering Scopes 1, 2 and 3, by 1% to 57,723 tonnes CO2e.
Building on the progress made last year to incorporate actual emissions from our supply chain in our footprint, this year we have increased our supplier engagement from 30 to 50 of our largest suppliers by spend. This represents around 65% of our total supplier spend for 2023. The balance of our annual spend is spread across a long tail of smaller suppliers.
We have engaged these core suppliers by issuing questionnaires to gather their relevant data and action plans for addressing their emissions. 32% of the suppliers we contacted responded. Where
actual emissions were provided, these were included within our Scope 3 Purchased Goods & Services reporting for 2023. The remaining emissions in this category were calculated using a spend-based methodology.
We recognise that our core suppliers are at different stages of their reporting journeys, and we have not engaged the entirety of our supply chain. We will continue to engage with them to, a) purse a better-quality Scope 3 emissions baseline and, b) develop a deeper understanding of their plans to address their emissions. We note, however, that nine of our top ten suppliers have published commitments to be net zero by 2050. Against this backdrop, we have no plans to set a Scope 3
emissions reduction target at this time, and will continue to engage with our key suppliers about their net zero plans.
TCFD Disclosure
TP ICAP is committed to continued adoption and alignment with the recommendations of the Task Force on Climate-related Financial Disclosures (‘TCFD’). Our 2023 TCFD disclosure is available to view online.
Supporting clients with the low-carbon transition
As the world turns from carbon-intensive practices to more sustainable alternatives, we believe the best way we can support this shift is through delivering on our purpose and accompanying our clients on their transition journeys.
We will achieve this by leveraging TP ICAP’s core strengths to develop and deliver the liquidity and data solutions necessary to equip market participants to advance their sustainability goals.
How we disclose and report on progress
TP ICAP is committed to disclosing and reporting all relevant data and information related to our own ESG performance.
